Plano TX Bankruptcy Attorney
If you are experiencing financial difficulty, a Plano TX bankruptcy attorney can help. Bankruptcy may be an option for you if you’re facing overwhelming debt. However, the bankruptcy process can be complex. It often requires dozens of legal documents and specific knowledge about bankruptcy laws. Contact an experienced Plano bankruptcy lawyer at Allmand Law Firm PLLC today for more information about how we can help you.
What Type of Bankruptcy Should You File?
When you decide to file bankruptcy, you have options. A Plano TX bankruptcy attorney can evaluate your specific situation and help you decide which type of bankruptcy is right for you.
- Chapter 7 Bankruptcy – Often called “liquidation bankruptcy,” Chapter 7 is often used to completely eliminate debt quickly. It can take between four and six months to complete a Chapter 7 bankruptcy, and at the end most, if not all, of your debt will be discharged.
- Chapter 13 Bankruptcy – Often called “reorganization bankruptcy,” Chapter 13 allows you to structure your debt into a manageable payment plan that can take three to five years to complete. At the end of your payment plan, some of your debt may be discharged.
There are other types of bankruptcy that may benefit you if both Chapter 7 and Chapter 13 are not right for you. You should speak with a Plano TX bankruptcy attorney before making any decisions about your financial future.
How to Qualify for Bankruptcy
Both Chapter 7 and Chapter 13 require filers to qualify, but in different says. For Chapter 7, you will take a means test that will determine if your income is low enough to be eligible. Your assets must also be under a certain limit. For Chapter 13, you must have enough disposable income to repay your debts. There are also limits on the various types of debt for Chapter 13.
A Plano TX bankruptcy attorney can help you with the Chapter 7 means test to determine if you qualify for Chapter 7. You may be able to skip the means test and automatically qualify. If you don’t, then you may be able to opt for Chapter 13, which can still help you wipe your financial slate clean.
What Are the Benefits of Filing for Bankruptcy?
If you’ve been dealing with financial stressors for a long period of time, then bankruptcy may be right for you. You can get significant relief with the help of a Plano TX bankruptcy attorney through a Chapter 7 or Chapter 13 bankruptcy. Some of the benefits of filing for bankruptcy include the following:
- Medical debts will be eliminated
- Credit card debt will go away
- Some tax debts may be eliminated, but others can be negotiated
- Personal and payday loans will be discharged
- Auto repossession will be halted
- Home foreclosure will be paused
- Collection accounts will be put on hold
- Creditors will stop calling you during your bankruptcy
- Lawsuits will be paused
- Wage garnishments will be stopped
You may be dealing with calls, letters, and emails from creditors threatening to take you to court. By filing bankruptcy, you will no longer have to deal with any of these. Their collection actions will be stopped, and much of that debt will be discharged. In other words, you will not be responsible for paying it.
What Is the Automatic Stay?
One of the benefits of filing for bankruptcy is that the court will order an automatic stay. This automatic stay will put all collection activities by creditors on hold throughout your bankruptcy. If your car has been repossessed or your home is in foreclosure, those legal actions will also be put on hold. All lawsuits or collection activity against you will stop.
You will be given an opportunity to negotiate with your creditors to keep property that may be connected to collection accounts, such as a car or house. A Plano TX bankruptcy attorney may be able to help you establish manageable payments or relinquish your property to repay the debt. You will have time to manage the situation during your automatic stay.
If a creditor contacts you after you file bankruptcy, you should give them your bankruptcy case number and the phone number of your Plano TX bankruptcy attorney. You do not have to handle creditors any longer. Instead, your bankruptcy trustee and bankruptcy lawyer will manage the situation for you. You will have options regarding your debts; however, you no longer have to speak directly with your creditors or handle legal actions against you.
Call a Plano TX Bankruptcy Attorney Today
If you have questions about your finances and how you should handle significant debt, then a Plano TX bankruptcy attorney can help. Allmand Law Firm PLLC has worked extensively with clients who have financial issues they are facing. We will evaluate your situation and develop a plan of action to address your needs. Call us today.